subscribe to our newsletter
Challenger annuity sales see jump in Q3

Challenger annuity sales see jump in Q3

Reporter
22 April 2016

Annuity sales for Challenger climbed to $575 million in the three months to 31 March, with sales up 29 per cent compared with the previous corresponding quarter.

In its report on assets and funds under management, net flows and sales, Challenger said annuity sales had risen from $445 million in the first quarter last year to $575 million for the first quarter this year.

Fixed-term annuity sales rose by 22 per cent or $80 million from the previous corresponding quarter up to $445 million, according to the results.

Lifetime annuity sales increased by $50 million from first quarter sales last year up to $130 million for the first quarter this year, representing an increase of 63 per cent.

Life annuity net book growth for the quarter, Challenger said, was $135 million or 1.6 per cent.

Challenger chief executive Brian Benari said the key stand-out were the lifetime annuity sales, which accounted for 23 per cent of sales in the quarter and benefitted from the companies to embed annuities within platforms such as the Colonial and VicSuper platforms.

“This resulted in flows through Colonial First State, being up more than 100 per cent on the same period last year,” said Mr Benari.

During the quarter, he added, there was also significant progress with regulatory reform agenda.

“Treasury is currently setting the objective of superannuation. This is critical to prepare Australia for one of the great social and economic issues of our time – the ageing of Australia’s population,” he said.

“It’s also the first logical step in an expected series of reforms, including a review of retirement income streams regulation and the development of Comprehensive Income Products for Retirement.”

***Correction*** The previous headline for this story mistakenly had the reporting period as quarter one. 

Read more:

ATO sets record straight on LRBA panic

Relationships with planners vital, accountants told

Voting now open for the 2016 SMSF Awards

Challenger annuity sales see jump in Q3
smsfadviser logo
  • 23
    Days
  • 07
    Hours
  • 54
    Minutes
  • 01
    Seconds

SMSF Summit is nearly here!
Have you got your ticket?

join the discussion

What do you plan to do in response to the new adviser education standards?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super